Study On Equity Structure And Performance About Listed Companies

An important problem on studying capital market is the performance of the listed companies, which is closely related with equity structure, diversified management, re-financing and M&A, etc. Basing on equity structure, this paper gives the empirical explanation for the changes of performance affected by equity structure. Though there are so many discussions and studies on the relationship between equity structure and business performance, the last word hasn't been formed now. Therefore, basing on reviewing the related literatures and theories, this paper gives the general, typical, empirical and expectation analyses respectively and in turn.Following the general analysis on equity structure and business performance with the related conceptions and theories, this paper describes the historical evolvement and actuality of the typical equity structure of Chinese listed companies, analyses the market behaviors of various shareholders and brings forward some hypotheses on the relationship between equity structure and business performance. Then, for the intricate equity structure, it concludes that it has its inevitability, but it has considerably negative impact on the business performance of Chinese listed company even the whole securities business.With the sample of the listed companies from Shanghai and Shenzhen stock markets, the variable of equity structure is analyzed in empirical analysis by using financial performance and market performance as the indexes respectively. In terms of choosing dependent variables, for financial performance, it doesn't use the single index but the resultant one by using principal component analysis;While for market performance, it uses the universal Tobin's Q index. Moreover, the former index reflects the financial outstanding achievement of the practical management, and the latter one reflects the market effect, as a result, it is of considerable value for contrastive study. In respect of choosing econometric regression models, it uses not only the linear regression model to simulate dependent variables, but also the curvy ones, and these two models are also of considerable value for contrastive study. The result from the above two contrastive studies shows that it is not very consistent for a firm's financial performance and market performance, and in detail, firstly, the advantaged non-negotiable shares have more preference on the financial performance than the negotiable ones; secondly, the relationship between equity structure and business performance is not completely linear. Therefore, only if a firm's financialperformance and market one are considered together, will the firm's performance be weighed roundly. Only if the linear model and the curvy one are compared, will the varying contrail between equity structure and business performance be found more accurately. Both of the above contrastive studies are significant for improving the illogical equity structure.At present, equity structure reform is improving the illogical equity structure as well as the inside and outside governance mechanism of Chinese listed companies in system. As a result, the anticipative analysis is done on equity structure and business performance after equity structure reform in this paper, and concludes that it cannot be accomplished in an action to realize the logical equity structure; and in particular, the status of the large state-shareholders couldn't change soon, neither did the pick-up behaviors of small and medium-sized shareholders. Basing on the above analyses, some scientific propositions on improving the status of all investors and structures of the listed companies are given to enhance their management performance and promote the development of the securities business in China.